SIE Exam Question 869: Answer and Explanation

Question: 869

Which of the following is/are correct regarding powers of attorney and powers of appointment?

(1) A power of attorney is a legal document created by an individual authorizing someone else to act on his or her behalf.

(2) A power of appointment is a power given to a donee allowing him or her to dispose of the donor's property by selecting one or more beneficiaries to receive the property.

• A. (1) only
• B. (2) only
• C. Both (1) and (2) are correct.
• D. Neither (1) or (2) are correct.

Correct Answer: C

Explanation:

A power of attorney is a legal document created by an individual authorizing someone else to act on his or her behalf. A power of appointment is a power given to a donee allowing him or her to dispose of the donor's property by selecting one or more beneficiaries to receive the property.